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Business Statistics Study Set 1
Quiz 11: Hypothesis Tests and Estimation for Population Variances
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Question 1
True/False
The test statistic that is used when testing a null hypothesis for a population variance is the standard normal z-value.
Question 2
True/False
In a two-tailed hypothesis test for the difference between two population variances, if s1 = 3 and s2 = 5, then the test statistic is F = 2.7778.
Question 3
True/False
Assume a sample of size n = 12 has been collected. To perform a hypothesis test of a population variance using a 0.05 level of significance, where the null hypothesis is: H0 : σ2 = 25 The upper tail critical value is 21.92.
Question 4
True/False
The managers for a fruit juice facility claim that the standard deviation for the ounces per bottle on the new automated line is not the same as the older manual line. Given this, the correct null and alternative hypotheses for performing the statistical test are: H0 : σ1 = σ2 Ha : σ1 ≠ σ2
Question 5
True/False
In a hypothesis test involving two population variances, if the null hypothesis states that the two variances are strictly equal, then the test statistic is a chi-square statistic.
Question 6
True/False
In a two-tailed hypothesis test for the difference between two population variances, if s1 = 3 and s2 = 5, then the test statistic is F = 1.6667.
Question 7
True/False
A contract calls for the strength of a steel rod to stand up to pressure of 200 lbs per square inch on average. The contract also requires that the variability in strength for individual steel rods be no more than 5 pounds per square inch. If a random sample of n = 15 rods is selected and the sample standard deviation is 6.7 pounds, the test statistic is approximately χ2 = 25.138.
Question 8
True/False
The central location and shape of the chi-square distribution depend only on the population variance.
Question 9
True/False
One of the most important aspects of quality improvement is the idea of reducing the variability in a product or service. For instance, a major bank has worked to reduce the variability in the service time at the drive-through. The managers believe that the standard deviation in service time should not exceed 30 seconds. To test whether this goal is being achieved, a random sample of n = 25 cars is selected each week and the service time for each car is measured. Last week, the mean time was 345 seconds with a standard deviation equal to 38 seconds. Given this information, if the significance level is 0.10, the critical value from the chi-square table is about 34.3.
Question 10
True/False
A one-tailed hypothesis test for a population variance always has the rejection region in the upper tail.
Question 11
True/False
A machine that is used to fill soda pop cans with pop has an adjustable mean fill setting, but the standard deviation is not supposed to exceed 0.18 ounces. To make sure that this is the case, the managers at the beverage company each day select a random sample of n = 6 cans and measure the fill volume carefully. In one such case, the following data (ounces per can) were observed.
Based on these sample data, the test statistic is approximately χ2 = 5.01.
Question 12
True/False
In a hypothesis test for the equality of two variances, the lower-tail critical value does not need to be found as long as the larger sample variance is placed in the denominator of the test statistic.